Factor Analysis and Confirmatory Factor Analysis

Running head : FACTOR ANALYSIS AND CONFIRMATORY FACTOR ANALYSIS

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Factor analysis is an arithmetical technique used to describe variability regarding observed variables with regard to lower number of unobserved variables . Factor analysis looks for such joint variations in response to unobserved hidden variables . The observed variables are molded as linear combinations of potential factors including the error terms . Information attained regarding interdependence between observed factors can later be utilized to reduce the set of variables within a dataset . Factor analysis originated in psychometrics

and is applied in behavioral sciences operations research and applied sciences which deal with large quantities of data . In psychology , factor analysis is in most cases associated with intelligence search . Factor analysis has been used to search for factors within a broad range of spheres such as character beliefs and attitudes

Factor analysis isolates the underlying variables that make clear the data . There are two types of factor analysis principal factor analysis and common factor analysis . The factors generated by principal factor analysis are theoretical as being as liner combinations of variables whereas those generated by common factor analysis are theoretical latent variables . Computationally , the main difference is that the diagonal relationship matrix is substituted with common variables in common factor analysis

Figure 1 . Model of Principal Factor Analysis

Factor analysis is performed through examining the pattern of connection between the observed variables . Variables which are highly related have a likelihood of being influenced by factors such as those which are moderately unrelated...